An Insurance Agent Should Provide Information in Designing an Insurance

question 11

True/False

An insurance agent should provide information in designing an insurance plan; the small business owner will only need to determine the price the company can afford.

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Definitions:

Activity Drivers

Factors that influence the costs of business activities by measuring the amount of activity that drives costs.

Root Cause

The underlying or fundamental reason for a problem or issue, which, when addressed, prevents recurrence.

Cost Drivers

Activities or factors that cause a change in the cost of a good or service, crucial for budgeting, planning, and cost management.

Normal Costing

An accounting method that assigns costs to products based on direct materials, direct labor, and an allocated portion of manufacturing overhead based on normal activity levels.